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ASTI - Advanced Science and Technology Institute
Financial Plan
The following sections will outline important financial information.
7.1 Break-even Analysis
The following table shows what our break-even point will be to cover our montuhly costs.
| Break-even Analysis | |
| Monthly Revenue Break-even | $22,033 |
| Assumptions: | |
| Average Percent Variable Cost | 0% |
| Estimated Monthly Fixed Cost | $22,033 |
7.2 Projected Surplus or Deficit
The following table will indicate projected surplus and deficit.
| Surplus and Deficit | |||
| Year 1 | Year 2 | Year 3 | |
| Funding | $286,000 | $261,000 | $285,000 |
| Direct Cost | $0 | $0 | $0 |
| Other Production Expenses | $0 | $0 | $0 |
| Total Direct Cost | $0 | $0 | $0 |
| Gross Surplus | $286,000 | $261,000 | $285,000 |
| Gross Surplus % | 100.00% | 100.00% | 100.00% |
| Expenses | |||
| Payroll | $144,000 | $157,000 | $168,000 |
| Sales and Marketing and Other Expenses | $83,000 | $39,000 | $39,000 |
| Depreciation | $0 | $0 | $0 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,000 | $2,000 | $2,000 |
| Insurance | $1,800 | $1,800 | $1,800 |
| Rent | $12,000 | $12,000 | $12,000 |
| Payroll Taxes | $21,600 | $23,550 | $25,200 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $264,400 | $235,350 | $248,000 |
| Surplus Before Interest and Taxes | $21,600 | $25,650 | $37,000 |
| EBITDA | $21,600 | $25,650 | $37,000 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $0 | $0 | $0 |
| Net Surplus | $21,600 | $25,650 | $37,000 |
| Net Surplus/Funding | 7.55% | 9.83% | 12.98% |
7.3 Projected Cash Flow
The following table and chart illustrate the projected cash flow.
| Pro Forma Cash Flow | |||
| Year 1 | Year 2 | Year 3 | |
| Cash Received | |||
| Cash from Operations | |||
| Cash Funding | $286,000 | $261,000 | $285,000 |
| Subtotal Cash from Operations | $286,000 | $261,000 | $285,000 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| Subtotal Cash Received | $286,000 | $261,000 | $285,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $144,000 | $157,000 | $168,000 |
| Bill Payments | $110,701 | $81,609 | $79,864 |
| Subtotal Spent on Operations | $254,701 | $238,609 | $247,864 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $254,701 | $238,609 | $247,864 |
| Net Cash Flow | $31,299 | $22,391 | $37,136 |
| Cash Balance | $185,499 | $207,890 | $245,025 |
7.4 Standard Ratios
The following table compares our standard ratios with the Standard Industry Code #8748, Other Management Consulting Services.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Funding Growth | 0.00% | -8.74% | 9.20% | 7.29% |
| Percent of Total Assets | ||||
| Other Current Assets | 0.00% | 0.00% | 0.00% | 51.87% |
| Total Current Assets | 100.00% | 100.00% | 100.00% | 75.02% |
| Long-term Assets | 0.00% | 0.00% | 0.00% | 24.98% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 5.23% | 3.10% | 2.68% | 31.06% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 17.80% |
| Total Liabilities | 5.23% | 3.10% | 2.68% | 48.86% |
| Net Worth | 94.77% | 96.90% | 97.32% | 51.14% |
| Percent of Funding | ||||
| Funding | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Surplus | 100.00% | 100.00% | 100.00% | 100.00% |
| Selling, General & Administrative Expenses | 92.45% | 90.17% | 87.02% | 74.84% |
| Advertising Expenses | 10.49% | 11.49% | 10.53% | 1.60% |
| Surplus Before Interest and Taxes | 7.55% | 9.83% | 12.98% | 2.61% |
| Main Ratios | ||||
| Current | 19.13 | 32.28 | 37.26 | 1.80 |
| Quick | 19.13 | 32.28 | 37.26 | 1.49 |
| Total Debt to Total Assets | 5.23% | 3.10% | 2.68% | 58.30% |
| Pre-tax Return on Net Worth | 12.29% | 12.73% | 15.52% | 6.19% |
| Pre-tax Return on Assets | 11.64% | 12.34% | 15.10% | 14.83% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Surplus Margin | 7.55% | 9.83% | 12.98% | n.a |
| Return on Equity | 12.29% | 12.73% | 15.52% | n.a |
| Activity Ratios | ||||
| Accounts Payable Turnover | 12.41 | 12.17 | 12.17 | n.a |
| Payment Days | 27 | 38 | 30 | n.a |
| Total Asset Turnover | 1.54 | 1.26 | 1.16 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 0.06 | 0.03 | 0.03 | n.a |
| Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
| Liquidity Ratios | ||||
| Net Working Capital | $175,800 | $201,450 | $238,450 | n.a |
| Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
| Additional Ratios | ||||
| Assets to Funding | 0.65 | 0.80 | 0.86 | n.a |
| Current Debt/Total Assets | 5% | 3% | 3% | n.a |
| Acid Test | 19.13 | 32.28 | 37.26 | n.a |
| Funding/Net Worth | 1.63 | 1.30 | 1.20 | n.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |